Lease Accounting

A lease is an agreement that transfers the right to use land, buildings, or equipment for a specified period of time. This financing device is essentially an extension of credit evidenced by an obligation between a lessee and a lessor.
Standards for lease accounting are set forth in ASC Topic 840, Leases (formerly FASB Statement No. 13, “Accounting for Leases,” as amended and interpreted).
Accounting with bank as lessee